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Declining Food Prices' Impact on CRE

SAN DIEGO—Food-price decline means yet another squeeze on profit margins for grocers already facing price wars from increased competition and pressure for lower prices from discount grocers and new entrants, CBRE's Anthony Buono tells GlobeSt.com EXCLUSIVELY.

By Carrie Rossenfeld | Updated on October 19, 2016
Anthony Buono Buono: “It’s really more about how they might reprogram inside the store to get more margin or efficiency.”

SAN DIEGO—Food-price decline means yet another squeeze on profit margins for grocers already facing price wars from increased competition and pressure for lower prices from discount grocers and new entrants, Anthony Buono, chairman of CBRE‘s global retail executive committee, tells GlobeSt.com. In a recent report from the firm, Buono said, “A steady decline in food prices has delivered a mixed bag for the economy, providing consumers with more disposable income but crimping the already-narrow profit margins of grocery operators. If these low prices persist, grocers will see margin pressure, but may adapt by focusing more on higher-margin prepared foods and refining their supply chains.”

We spoke exclusively with Buono about what a decline in food prices means for food-related retail space.

GlobeSt.com: What does a decline in food prices mean for food-related retail space? 

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